Is now the right time to franchise? It can be tempting to make the leap when you know there is money to be earned, but there are several things you need to consider before transitioning into a franchise. All too often, successful businesses fail when they try to franchise because operating a business is much different than overseeing franchise owners.
What do you need to consider before making the transition?
Whether You Have a Reproducible Business Model
There are plenty of amazing businesses out there, but not all of them are suitable for franchising, in part because they cannot be duplicated. If your business relies on your personal brand, or you lack systems that can be provided to franchise owners, you might want to reconsider franchising.
Whether You Have a Consistently Profitable Business Model
You might have a successful business, but that doesn’t mean it will translate to a consistently profitable business model across a franchise. Your responsibility as a franchisor is to ensure your franchisees will consistently profit from the opportunity. They are making an investment and it’s your job to help protect that investment.
Whether You Have a Large Market of Potential Franchisees
What’s the point of franchising if there is no market of franchisees? In order to be successful, you must know who to target with your opportunity. If people have already expressed interest, chances are you are onto something. If not, there’s more research to be done. Take heart though – even if you haven’t yet identified a market of franchisees, there could still be one out there.
Whether Your able to Provide Education, Training, and Marketing
People invest in franchise opportunities because they offer so many “built in” benefits. Unless you can provide these benefits, you are not ready to be a franchise.
Whether You Have Sufficient Capital
Launching a franchise is expensive and you need the financial resources to make it work before moving forward.
Want to discuss further whether you are ready to franchise? Give us a call!